According to the text, Ethiopia probably has a low per capita real Gross Domestic Product (GDP) because

A. it has a corrupt government.
B. it has a low rate of saving.
C. it has too many resources.
D. there are too many skilled workers in the country.

Answer: B

Economics

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Exhibit 30-2

?

A. Curve X, because if there is a positive externality, negative external benefits are associated with it: social costs external benefits - private benefits, therefore the marginal social benefit curve must lie below the marginal private benefit curve. B. Curve X, because if there is a positive externality, external benefits are associated with it: social benefits = external benefits + private benefits, therefore the marginal social benefit curve must lie below the marginal private benefit curve. C. Curve Y, because if there is a positive externality, external costs are associated with it: social benefits = external costs + private benefits, therefore the marginal social benefit curve must lie above the marginal private benefit cost curve. D. Curve Y, because if there is a positive externality, external benefits are associated with it: social benefits = external benefits + private benefits, therefore the marginal social benefit curve must lie above the marginal private benefit curve.

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Firms in which market structure hold the most market power?

(A) Monopolistic competition (B) Oligopoly (C) Monopoly (D) Perfect competition

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If a natural disaster were to cause a negative long-run supply shock to the economy, once the economy adjusts, the new equilibrium will be at a:

A. higher price level and lower level of output. B. lower price level and lower level of output. C. higher price level and higher level of output. D. lower price level and higher level of output.

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Economics

The local substitution argument against using public money to attract baseball spring training sites is

A. even more valid than the argument against regular stadiums. B. less valid than the argument against regular stadiums because most of the fans at a spring training game are tourists who would not be in that city otherwise. C. completely invalid because no one at a spring training game is from the local community. D. just as valid as the argument against regular stadiums.

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Economics